Digging Deep Into The Dark Side Of Business With Corporate Audits

In order to get an idea of what your competition looks like, a corporate background check will help you snoop on their operation is like. In addition to mapping out their team members, you may also get an idea of who their business partners are and the direction of the company.

Such a business intelligence report will likely include current and previous fund managers. It will cross check with the way funds of all types were handled and will dig into the career or criminal history. This is highly useful if your company is considering new hires for fund managers that transferred from previous organizations.

If you are investigating venture capital groups, an in-depth service will look at investors and executives of the fund. It will also cross-check with regulatory agencies to see if there are dirt finds going through an organization, whether it is intentional or not. Similar checks may be performed for private equity deals.

If a company is looking to populate their boardroom with experienced executives, a round of background checks would also be appropriate. You may dig deep into their references to confirm the validity and you may also check how the companies performed. In addition, you may look into their compliance with financial laws and check their credit history.

If you are engaging in a partnership with a new vendor, or simply purchasing service on a contract basis, it is a good idea to have the company screened as well. Make sure that their company has the proper credentials and see who they do business with.

Some real-world examples of corporate audits include:

Findind Fraudsters

A large hedge fund that was managed by Murray Hubert had some shady details so it was investigated by a private audit company. With some digging into the manager’s history, he had been involved with multiple cases of fraud and had sanctions by the SEC. Thankfully, this problematic character was sacked before serious harm could be done.

Verifying Identities

It is a scary thought that an applicant may be using a forged government identification when submitting an application. Believe it or not, it can even happen at the higher end of the corporate totem pole.

In one instance, Corporate Resolutions had double checked the identification of an applicant that proved to be false. Not only did this person have a criminal record, he was also wanted by the police. All part of the standard executive background check procedure.

Trade Sanctions

If you own an investment firm, you likely know the importance of compliance with local laws. When a big-time investor was interested in getting involved with a Hong Kong-based fund, they hired a private investigator. It turns out that this fund was actually from India and had sanctions by local authorities.

Verifying credentials

Educational credentials are not that hard to fake up-front, especially with cheap online diploma mills available. This is why due-diligence should be carried out by the HR department to at least see if they attended the college.

To dig a little deeper, a professional auditing company may be used. They may find out if the college degree is from a more sophisticated fake degree vendor. Such vendors may confirm phone calls and provide realistic looking transcripts. They may also be named similarly to accredited universities to stay under the radar.